We are experiencing devastating effects on the planets water supplies, as more and more water stores are used up or diverted as a part of intensive farming procedures. Waste disposal is becoming a problem worldwide, and our oceans are slowly but surely becoming a giant waste disposal pit. It is estimated that over half of the plastic produced every year is single use – this means that it is used once, and then either thrown into landfill or finds its way into the environment. According to scientists, up to 12 million tons of plastic enters the ocean every year, forming giant floating garbage patches all over the world ⁵ .
In general, crowding out might take place due to two reasons: 1) when domestic firms disappear because of higher efficiency and better product quality of foreign subsidiaries, and 2) when they are wiped out because these foreign affiliates have better access to financial resources and/or engage in anticompetitive practices. In the first case, the net impact on welfare is positive as firms with higher efficiency and better product quality contribute to the economic development of the host country. But in the second case, there is welfare loss and governments intervene through different channels in order to help the local firms. For example, they might establish or subsidize financing for domestic small and medium firms (Bhalla and Ramu, 2005).